Are you experiencing a cash crunch at the end of the month or facing an emergency that needs your immediate attention? While these monetary situations need attention immediately, taking a chunk out of your savings account is not practical in every situation.
If you do not want to dig out your savings or grab your emergency funds, here is a better solution, a small loan!
Working around your budget is already tough. When an emergency expense, an unplanned bill repair, or even the need to buy a new phone is thrown at you, a small personal loan can prove sufficient.
Taking out from your savings for every other minor inconvenience is impractical. Hence, a small loan becomes the best alternative. Here are six common reasons why people use it and some ways in which even you can take help of a small personal loan:
1. Minor Home Repairs or Home Updates
Handling minor electrical work, turning a small storage room into a home office, or changing some furniture come under minor home repairs.Although they are labelled "minor repairs", not everyone has the budget to fund these so-called small fixes. But leaving them on their own might also not a great choice. This is when you can use a small loan.
2. Unexpected Travel Plans
Unexpected travel plans can occur at any moment. You can avoid some of them. At the same time, you cannot prevent certain circumstances.
We all know there goes a lot into travelling, from planning to booking. But if you are faced with an unavoidable immediate trip, you miss out on strategically planning things like pre-booking flight tickets. We all know last-minute flight seats can easily soar beyond ₹10,000. People who face such situations prefer taking out a personal loan.
3. Medical Expenses
Having a solid insurance policy is a great backup plan, but that does not mean you are 100% covered for every medical emergency. Hospitals may ask for some deposits when you have to go for surgery. For quick fund disbursement, people take up a small personal loan.
Surely you can take help of your emergency fund, but laying hold of it makes more sense when you need a larger amount. So why disturb your years' worth of savings on minor medical emergencies when you can have a better option?
4. Auto Repairs
A small personal loan is flexible because it can practically aid even your smaller needs – from minor emergency expenses to a few home improvements. Moreover, some people take this loan for smaller automobile repairs like fixing a loose wire or replacing an old part.
5. Minor Wedding Expenses
Weddings are a huge deal, and since they are such a big part of an individual's life, pre-planningand setting a wedding budget must be in your mind for as long as you can remember!
However, there can arise unexpected situations like falling short on some bucks. For example, the dream dress you wanted to wear is probably ₹20,000 out of your budget.In this scenario, taking out a small amount of personal loan is a thoughtful decision.
6. Credit Card Bills
Credit cards add convenience to your living. They allow you to make purchases with a promise of returning their money, sometimes with interest and sometimes excluding it. But paying them back monthly can get overwhelming.
A great alternative to handling card repayments is taking out a small loan. It is called debt consolidation. Here you take out a loan and pay off the credit card debt or any other type of loan in one go rather than repaying it from time to time and adding more interest rates to the original amount!
The bottom line is that a small loan allows your flexibility and is perfect for aiding your smaller financial needs! Whether you have emergency expenses or are considering debt consolidation, handling minor expenses is where this loan comes in handy.